- The company is currently producing 6 million bricks per month
- It is targeting a record 18-24 million bricks a month
- The company is set to commission Steele 90 plant in Melfort
Harare- One of the leading bricks manufacturer, Beta Bricks Limited will start producing 18-24 million bricks this year when it fully commissions the Steele 90 plant in Melfort which is in the last stages of completion. The company is currently producing 6 million bricks a month, lagging behind demand. The bricks plant is set for commissioning in September this year.
This is according to the latest press statement released by the Company.
The Company said it failed to meet bricks demand during the period due to under-capacitation. The company currently produces 6 million bricks per month and to address the demand, it embarked on two major projects with the installation of the third plant in Mount Hampden late last year.
However, Beta Bricks looks to expand its production capacity, it may face several challenges such as electricity shortages and rainfall variability due to climate change. Besides that, the company still faces competition from its main rival, Willdale Zimbabwe Limited.
Although the government of Zimbabwe said the country is now electricity self-sufficient, data on the ground is speaking another tone. Most of the power comes from Kariba Power Station which relies on natural rains. Against the advent of climate change, electricity self-sufficiency remains a myth. Besides, Hwange Thermal Power Station remains relying on ageing power plants which are not reliable.
Morden Ways to Adopt and or Buttress and Curtail Challenges
In this case, the Company need to consider the opportunity cost of investing in renewable energy to avoid supply gaps. Beta Bricks can invest in renewable energy sources such as solar power, which can provide a reliable source of electricity while reducing its dependence on the national grid. The company can install solar panels on its rooftops and invest in energy storage systems to ensure that it has a constant supply of electricity, even during times of power outages or shortages. Though it comes with costs in the short term, it pays in the long run by reducing costs to divert to generators during blackouts.
Given the potential for rainfall shortages, Beta Bricks can explore water management solutions to ensure that it has access to sufficient water for its operations. This can include capturing and storing rainwater, using efficient irrigation systems, and investing in water recycling and reclamation systems. Ibeto Group a Nigerian-based company implemented water management systems which paid off.
Despite that, Beta Bricks can also invest in green technologies that reduce its carbon footprint and environmental impact. This can include using energy-efficient equipment, implementing sustainable production practices, and reducing waste through recycling and reuse. By adopting green technologies, the company can not only mitigate the impacts of climate change but also improve its reputation and attract environmentally conscious customers. Corobrik, Wienerberger, and Ibeto Group have all invested in green technologies.
The company can also invest in vertically integrating its operations. The South African company Corobrik has implemented vertical integration in its operations. The company controls all stages of the brick-making process, from the sourcing of raw materials to the manufacturing and distribution of finished products. This approach allows Corobrik to have greater control over the quality of its products and reduce its reliance on external suppliers. Vertical integration in the brick manufacturing industry involves controlling the entire supply chain, from the sourcing of raw materials to the distribution of finished products. This approach can help companies to have greater control over the quality of their products and reduce their reliance on external suppliers. In the case of Beta, vertical integration will allow the company to control the entire brick-making process and ensure the quality of its products.
Beta Bricks can explore the use of automation in its production processes to increase efficiency and reduce labour costs. This can include the use of computer-controlled systems to handle tasks such as brick moulding, cutting, and packaging. However, this all depends on opportunity costs. Another way the company can employ lean manufacturing principles is demonstrated by Corobrik, Brikor Limited, and PG Bison. PG Bison is a brickmaker in Zambia. This would involve streamlining production processes, reducing inventory levels, and optimising the use of resources to improve overall productivity.
The last way the company can explore is data analytics. The Australian company, Brickworks Limited uses data analytics to optimize its production processes. The company's software analyses data from its manufacturing operations to identify areas of inefficiency and opportunities for improvement. This approach allows Brickworks Limited to optimise its production processes and reduce costs. Data analytics in the brick manufacturing industry involves analysing data from manufacturing operations to identify areas of inefficiency and opportunities for improvement. This approach can help companies to optimise their production processes, reduce costs, and improve the quality of their products. In the case of Beta Bricks, data analytics will allow the company to identify areas of inefficiency in its production processes and make data-driven decisions about how to improve them.
How can it fight competition?
As for competition from its main rival, Willdale, Beta Bricks can take several steps to remain competitive. The first one is Price competition. Willdale and other competitors may try to compete on price by offering lower-priced bricks. To address this, Beta Bricks can focus on its quality and reputation, ensuring that its bricks are of a higher quality and more durable than its competitors.
Another way to go is embracing innovation. Willdale and other competitors may try to differentiate themselves through innovation, offering new and unique brick designs or features. To respond, Beta Bricks can invest in research and development to come up with its innovative products and stay ahead of the competition.
Competitors may further try to out-market Beta Bricks by investing in advertising and promotion. To combat this, Beta Bricks can focus on building stronger relationships with its customers, providing excellent customer service, and leveraging its reputation as a leading brick manufacturer in Zimbabwe.
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